Climate Change Regulation 2026

CANADA Law and Practice Contributed by: Thomas McInerney, Selina Lee-Andersen, Sonia J. Struthers and Elyse Bouey, McCarthy Tétrault LLP

McCarthy Tétrault LLP 66 Wellington Street West Suite 5300 TD Bank Tower Toronto, ON M5K 1E6 Canada Tel: +1 416 362 1812

Email: info@mccarthy.ca Web: www.mccarthy.ca

1. Multilateral and Regional Regimes 1.1 Multilateral Climate Change Legal Regime United Nations Framework Convention on Climate Change Canada is a long-standing participant in the interna - tional climate change regime. It signed and ratified the United Nations Framework Convention on Cli - mate Change (UNFCCC) in 1992, and the Conven - tion entered into force for Canada in 1994. As a party, Canada works with other UNFCCC parties to advance global efforts to reduce greenhouse gas (GHG) emis - sions and respond to climate-related risks. Canada’s participation includes preparing and sub - mitting annual national GHG inventories, periodic reporting on mitigation and adaptation measures, and participation in the transparency and accountability mechanisms established under the Convention and related agreements. Canada also contributes financial and technical support for climate mitigation, adapta - tion and capacity-building in developing countries, with a particular focus on vulnerable states. Canada contributes to international climate science, monitoring and research, including through the Inter - governmental Panel on Climate Change (IPCC). These activities inform both domestic policy development and Canada’s engagement in multilateral negotiations. Paris Agreement Canada was among the 196 parties that adopted the Paris Agreement on 12 December 2015, signing and ratifying it in 2016. The Agreement is the princi - pal international framework guiding Canada’s climate commitments and domestic policy.

1.2 Regional Climate Change Legal Regimes Canada’s participation in regional initiatives occurs primarily at the provincial rather than federal level, reflecting the constitutional division of powers and the significant role provinces play in environmental and energy regulation. Provinces participate in various regional and cross-border initiatives to reduce GHG emissions, co-ordinate climate policy and facilitate emissions trading. Key examples include the Western Climate Initiative, Inc (WCI), the Pacific Coast Collabo - rative, and the New England Governors and Eastern Canadian Premiers (NEG-ECP) partnership. Western Climate Initiative, Inc (WCI) The non-profit WCI administers the joint auctions, market registry and financial services for the GHG emissions-trading programs of its participating juris - dictions, including Quebec and California. Washington State joined WCI in 2021 to support the implementa - tion of its cap-and-invest program, which started in 2023. Since the fall of 2024, WCI has worked with New York State on planning for platforms that could support a future cap-and-invest program. Pacific Coast Collaborative The Pacific Coast Collaborative comprises British Columbia, Washington, Oregon, California, and the cities of Vancouver, Seattle, Portland, San Francisco, Oakland and Los Angeles. Its members have set a goal of reducing greenhouse gas emissions by at least 80 percent by 2050 through regional action on power grids, transportation and buildings, alongside initia - tives to promote climate resilience.

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